Claude Code v2.1.85 Release: MCP Improvements, Hook Filters, and Bug Fixes

Claude Code v2.1.85 is a maintenance release focused on improving MCP (Model Context Protocol) functionality, adding granular control over hooks, and fixing numerous bugs across the system.
New Features and Improvements
MCP Enhancements:
- Added
CLAUDE_CODE_MCP_SERVER_NAMEandCLAUDE_CODE_MCP_SERVER_URLenvironment variables to MCPheadersHelperscripts, allowing one helper to serve multiple servers - MCP OAuth now follows RFC 9728 Protected Resource Metadata discovery to find the authorization server
- Fixed MCP step-up authorization failing when a refresh token exists — servers requesting elevated scopes via
403 insufficient_scopenow correctly trigger the re-authorization flow - Fixed Python Agent SDK:
type:'sdk'MCP servers passed via--mcp-configare no longer dropped during startup
Hook System Improvements:
- Added conditional
iffield for hooks using permission rule syntax (e.g.,Bash(git *)) to filter when they run, reducing process spawning overhead - PreToolUse hooks can now satisfy
AskUserQuestionby returningupdatedInputalongsidepermissionDecision: "allow", enabling headless integrations that collect answers via their own UI - Fixed
--worktreeexiting with an error in non-git repositories before theWorktreeCreatehook could run
Other Additions:
- Added timestamp markers in transcripts when scheduled tasks (
/loop,CronCreate) fire - Added trailing space after
[Image #N]placeholder when pasting images - Deep link queries (
claude-cli://open?q=…) now support up to 5,000 characters, with a "scroll to review" warning for long pre-filled prompts - Plugins blocked by organization policy (
managed-settings.json) can no longer be installed or enabled, and are hidden from marketplace views tool_parametersin OpenTelemetrytool_resultevents are now gated behindOTEL_LOG_TOOL_DETAILS=1
Bug Fixes
Core Functionality:
- Fixed
/compactfailing with "context exceeded" when the conversation has grown too large for the compact request itself to fit - Fixed
/plugin enableand/plugin disablefailing when a plugin's install location differs from where it's declared in settings - Fixed
deniedMcpServerssetting not blocking claude.ai MCP servers - Fixed
switch_displayin the computer-use tool returning "not available in this session" on multi-monitor setups - Fixed crash when
OTEL_LOGS_EXPORTER,OTEL_METRICS_EXPORTER, orOTEL_TRACES_EXPORTERis set tonone - Fixed diff syntax highlighting not working in non-native builds
Performance and Memory:
- Fixed memory leak in remote sessions when a streaming response is interrupted
- Fixed persistent ECONNRESET errors during edge connection churn by using a fresh TCP connection on retry
- Improved @-mention file autocomplete performance on large repositories
- Improved scroll performance with large transcripts by replacing WASM yoga-layout with a pure TypeScript implementation
- Reduced UI stutter when compaction triggers on large sessions
User Interface and Terminal:
- Fixed prompts getting stuck in the queue after running certain slash commands, with up-arrow unable to retrieve them
- Fixed raw key sequences appearing in the prompt when running over SSH or in the VS Code integrated terminal
- Fixed Remote Control session status staying stuck on "Requires Action" after a permission is resolved
- Fixed shift+enter and meta+enter being intercepted by typeahead suggestions instead of inserting newlines
- Fixed stale content bleeding through when scrolling up during streaming
- Fixed terminal left in enhanced keyboard mode after exit in Ghostty, Kitty, WezTerm, and other terminals supporting the Kitty keyboard protocol — Ctrl+C and Ctrl+D now work correctly after quitting
- Improved PowerShell dangerous command detection
This release is primarily for developers using Claude Code with MCP integrations, custom hooks, or experiencing specific bugs in previous versions.
📖 Read the full source: GitHub Claude-Code
👀 See Also
Claude Code v2.1.261: New Skill Doctor and Output Limits
Claude Code v2.1.261 adds /skill-doctor to prune unused skills, bashOutputMaxChars and taskOutputMaxChars settings for larger inline output, and --append-subagent-system-prompt-file for large prompts. Includes many fixes for remote control and proxies.

Claude Code v2.1.216: Sandbox Filesystem Toggle, Quadratic Slowdown Fix, and 30+ Bug Fixes
Claude Code v2.1.216 adds sandbox.filesystem.disabled to skip filesystem isolation while keeping network egress control, fixes a quadratic message normalization slowdown in long sessions, and resolves 30+ bugs including OAuth token expiry, worktree isolation, and background agent persistence.

Claude Code 2.1.80 adds rate limit visibility, MCP push messaging, and memory improvements
Claude Code version 2.1.80 introduces rate limit visibility in the statusline, MCP push messaging via the --channels flag, inline plugin configuration, and reduces memory usage by 80MB on startup.

Claude Code v2.1.145: JSON Agent Listing, OTEL Span Fixes, Security Patch, and More
Claude Code v2.1.145 adds `claude agents --json` for scripting, fixes a permission-prompt bypass, improves OTEL spans, and more.